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To: Sector Investor who wrote (531)11/13/1997 4:56:00 PM
From: Maverick  Respond to of 1629
 
Pac Bell debuts FasTrack DSL service

Phone lines: Selected cities offered higher-speed access to Net, networks.

BY JON HEALEY
Mercury News Staff Writer

Pacific Bell today will launch a long-awaited service to boost the performance of its phone lines,
giving customers in selected Bay Area communities high-speed access to the Internet and
corporate computer networks.

The service, based on so-called asymmetric digital subscriber line (DSL) technology, is three to
10 times as fast as ISDN, Pac Bell's other high-speed service. But it may be slower and is far
more expensive than the services gradually being introduced by Tele-Communications Inc., the
Bay Area's dominant cable company.

A handful of entrepreneurial phone companies are expected to launch their own DSL offerings in
the Bay Area, too, and a number of high-speed wireless alternatives are on their way. But Pac
Bell has a head start on the competition, in part because the company thwarted other firms' efforts
to offer DSL service through the lines used by burglar alarm companies.

The driving force behind this competition is the growing hunger for bandwidth -- the capacity to
transport information to and from computers around the globe. The demand for bandwidth is
climbing fast as the Internet becomes a prime conduit for entertainment and commerce, more
companies rely on workers outside their offices, and the increasingly global economy requires more
information to be transported electronically.

In this competition -- involving at least six different technologies -- the deciding points for
consumers will be price, speed, reliability and availability.

The Pac Bell service, dubbed FasTrack DSL, is too expensive to be practical for a casual Internet
user. The main appeal will be to small to mid-sized businesses that want fast Internet access or
that move large amounts of data in and out of their networks -- to telecommuting employees, for
example, or to subcontractors.

In light of the competition to come, Pac Bell will have to do a better job on FasTrack DSL's
customer service than it has done with ISDN. Consumers complain that the ISDN service from Pac
Bell has been plagued by long waits for installation and unreliable performance.

DSL vastly increases the capacity and speed of ordinary phone lines by using special equipment at
the customer's premises and Pac Bell's central offices. This equipment transmits data at
frequencies above those used for ordinary phone conversations, allowing users to surf the Internet
and make phone calls simultaneously over a single line.

The main problem with DSL and related services is that they require a certain type of copper line
to work, and not every customer has that kind of line. Indeed, the newest buildings and housing
developments often boast fiber-optic cables in lieu of copper wires.